Visa’s report highlights a surge in AI-driven phishing, record ransomware attacks, and a 40% rise in enumeration attacks, stressing the urgency of improved cybersecurity in retail and eCommerce.
Key Points
- Visa’s Biannual Threats Report: Retail and eCommerce face growing fraud complexity.
- AI-amplified Phishing Schemes: Fraudsters use advanced AI tech to deceive.
- Surge in Ransomware Attacks: 91% increase in March 2023.
- Visa’s Vigilance: Identifying threats and protecting online merchants; $30 billion fraud prevented in six months.
Visa Inc. Unveils Biannual Threats Report, Highlighting Increase in Fraud Schemes in Retail and eCommerce
Visa Inc., a pioneer in digital payments, recently released its Fall 2023 Biannual Threats Report, shedding light on the growing complexity of fraud schemes targeting the retail and eCommerce sectors.
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— LouisColumbus (@LouisColumbus) September 7, 2023
Phishing Schemes Amplified by AI
The report brings attention to an alarming surge in phishing schemes, which have been intensified by the use of generative artificial intelligence (AI) tools.
This development marks a new chapter in the cyber threat landscape, with fraudsters utilizing advanced AI technology to deceive unsuspecting individuals and organizations.
March 2023 witnessed a significant increase in ransomware attacks, setting a new record with approximately 460 attacks.
This represents a staggering 91% surge from February 2023 and a 62% year-over-year increase.
It is important to note that these attacks no longer solely target payment data but also compromise other accessible data, such as personal identifiable information.
Enumeration Attacks Surge
The first half of 2023 saw a 40% increase in enumeration attacks, a concerning trend that Visa actively fought against.
Visa’s real-time Account Attack Intelligence played a crucial role in identifying and mitigating these threats, demonstrating the importance of constant monitoring and swift action.
Online merchants bore the brunt of fraud and breach investigations, accounting for 58% of total cases. Physical retailers faced 20% of the investigations, while ransomware and fraud schemes accounted for 7%.
This highlights the vulnerability of online merchants and the need for robust security measures to protect customer data.
In the past six months, retail-specific fraud schemes have gained traction. These include counterfeit merchant sites, malvertising, flash-fraud scams, and the emerging “free gift” crypto scam.
Fraudsters continue to evolve their methods and target unsuspecting consumers, necessitating continuous vigilance from businesses and consumers alike.
Visa Commitment
Paul Fabara, Chief Risk Officer at Visa, expressed confidence in Visa’s proactive approach to combating fraud. He highlighted that Visa prevented $30 billion worth of fraud in the last six months alone, a testament to their commitment to staying ahead of increasingly sophisticated fraudsters.
Visa’s commitment to combating cybercrime extends beyond their own measures.
Through collaborative efforts with global law enforcement agencies, Visa has played a pivotal role in significant crackdowns on cybercrime. Notable actions include the takedown of the cybercrime platform Try2Check by the US Secret Service, resulting in the potential imprisonment of its administrator, Denis Gennadievich Kulkov, for up to 20 years. Similarly,
Operation Urban Justice in California led to the arrest of 20 suspects linked to an Eastern European crime syndicate involved in Electronic Benefit Transfer fraud. Additionally, an international coalition arrested 119 individuals associated with the cybercrime platform Genesis Market in April 2023.
Concluding Thoughts
In addition to their efforts in combating fraud, Visa recently announced the enhancement of their stablecoin settlement capabilities, including integration with the Solana blockchain.
Furthermore, Visa has embarked on pilot projects in collaboration with merchant acquirers Worldpay and Nuvei, showcasing their commitment to staying at the forefront of digital payment innovations.
In conclusion, Visa’s Fall 2023 Biannual Threats Report highlights the increasing sophistication of fraud schemes targeting the retail and eCommerce sectors.
As fraudsters exploit AI technology for phishing schemes and ransomware attacks become more prevalent, Visa remains committed to proactive measures and global collaborative efforts to safeguard the global economy.
With ongoing advancements in stablecoin settlement capabilities and strategic partnerships, Visa continues to lead the way in digital payments.
